Organisation Behavior Issues - Case Study Example

Name Class Unit Introduction Toyota Motors Corporation was started in 1937 by KiichiroToyoda. The company is one of the world largest car company and the largest in Japan. The company uses lean manufacturing system in its operations. Through use of Toyota Production System, the company have been able to revolutionise their human resources. Toyota has created a learning organisation which is capable of responding to market needs. Toyota organisation structure has helped in developing their culture. The company structure allows continuous improvement where managers focus more on improvements. The organisation structure allows delegation of tasks to lower ranks which have initiated a culture of risk taking. Toyota culture ensures that both individuals and teams are recognised for their input (Rother, 2010). The employees’ growth is based on their perfoamcne in the team. This report analyses Toyota organisation behaviour. This will be achieved through looking at the company organisation structure, culture, employee motivation and leadership aspects. Organisation structure and culture An organisation structure refers to the manner in which individual and teamwork are coordinated and organised. For the organisation to achieve its goals, it requires to manage both individuals and teams. Through organisation structure is becomes possible to achieve coordination. Organisation structure determines how communication is carried out and the way in which different individuals are linked (Kummerow & Kirby, 2013). The aspects of an organisation structure are; centralisation, formalisation, levels of hierarchy and departmentalisation. The four main building blocks that lead to formation of company structures are; mechanistic and organic structures. Mechanistic structures The structure resembles a bureaucracy. This is a structure that is highly formalised and structured. Mechanised structures uses formal communication channels and each employee have a specific job with its designated responsibilities. This form of structure is rigid and hard to implement changes. There is inhibition of entrepreneurship and innovation. The level of individual initiative is low as well as low self determination. The organisation with mechanistic structure has low motivation. Despite high number of disadvantages, the structure is highly applicable in some organisations with a stable environment. The structure has high level of efficiency. Organisations are able to minimise costs and enhance efficiency, they can use this structure (Kummerow & Kirby, 2013). Organic structure Organic structures are flexible and decentralised and have very low level of formalisation. There is flexible communication in the organisation. The organisations with this structure give employees a wide job description that is based on their expertise. There is high level of employee satisfaction in organic structures (Kummerow & Kirby, 2013). Organic structures leads to high level of innovativeness in an organisation. Toyota organisation culture and structure Toyota Motor Corporation has been seen by many automotive organisations as a model company. The company is the leader in the automotive industry. The company have a structured system which helps them to solve issues when they arise. This is through Toyota production System (TPS). The organisation have TPS built according to “just in time” production. This has enabled Toyota to have a system where raw materials are delivered to the assembly line when they are in need. The company have built a culture where there is low waste. The system ensures that the employees are empowered and encourages efficiency in part of the employees. The company organisation culture empowers the assembly lines workers to stop production in case of a problem. Toyota Motors organisation structure is hierarchical with all decisions being made at the head office in Japan. There is high level of mechanisation in the company organisation structure. Toyota organisation structure is same in every country of operation with the management reporting to head office in Japan (Dietz & Gillespie, 2011). The following structure is UK organisation structure in UK. Fig.1, Toyota organisation structure (Toyota Motor Manufacturing (UK) Ltd, 2015) Impact of organisation’s structure and culture on Toyota performance Due to Toyota rapid expansion in 1990s, they started experiencing problems in mechanised organisation structure. The structure led to low response time. This has led to a lot of recalls of their vehicles which have been blamed on their structure poor communication. There is a rigid organisation culture which inhibits free communication. The hierarchical levels have led to poor communication. The company decisions are centralised and made in Japan (Dietz & Gillespie, 2011). Despite this, the organisation is working in ensuring that its organisation culture is less mechanised to allow free communication and fast response to crisis. Toyota has been relying too much on globally centralised structure. The organisation have been working on coming up with a structure that will balance both local and central control. The organisation structure has led to poor public relations that have contributed highly to recent safety issues (Dietz & Gillespie, 2011). There have been hindered information control and poor response time. Factors influencing individual behaviour Leadership Organisation leaders have a great role in influencing individual behaviours at the area of work. Leaders come up with the direction members in a team should follow. When the leadership is strict, employees lose morale to work. Managers are supposed to make employees feel worthy in an organisation. If leaders are always late at work, employees may develop same habit (Brooks, 2006). Work culture For employees to feel happy and safe, they need a workplace where they are comfortable. Organisations are supposed to have fair rules and regulations. Employees are supposed to be respectful to their employers and adhere to the code of ethics. Organisation level of transparency is very essential in determining individual behaviour. Employees’ behaviour is also to a great extent determined by the level of job security. When an organisation has no job security, employees tend to be less motivated and easily leave (Brooks, 2006). Responsibilities The level of employees’ responsibility determines their behaviour. When employees are overburdened, they tend to perform poorly. Organizations with clear level of responsibilities have well performing employees and high output (Brooks, 2006). Communication The way communication is carried out in an organisation determines individual’s behaviour. When employees are not well communicated to, they lose interests in work. Employees require having their input in organisation decisions (Brooks, 2006). Relationship at work Friends at workplace play a very important role. These are people which employees interact with and share their experiences. Employees requires to be given time to interact with others. When there is no interaction, hostility comes in leading to stress (Brooks, 2006). Abilities Person abilities are their traits which can be learnt or natural. They are the abilities which can be physical or mental. The employee awareness of their abilities as well as the management perception plays a major part in determining their behaviour. This determines the type of task they are able to perform (Brooks, 2006). Perception Perceptions that determines individual behaviour at work place is; stereotyping and selective perception. Stereotyping involves having a generalised belief that does not look at other significant attributes. Stereotyping leads to inaccurate data that may affect employees’ behaviour. Selective perception only looks at things that fit ones notion and ignoring the others (Brooks, 2006). Attitude This is based on employees’ abstract response. This is a quick response without deep reasoning and leads to bias. An employee may have a negative attitude towards working on certain department due to their attitude (Brooks, 2006). Leadership styles Autocratic This is a leadership style where leader makes decision without making any consultations. This type of leadership works well where there is no need for consultative decision making. This may cases where decision cannot change due to an input given. There is high emphasis on performance and low emphasis on people. This form of leadership relies more on control and power (Tracy, 2014). Democratic More emphasis is placed on people and their performance. The leader involves other peoples in decision making. Despite this, the leaders have the final say through enabling consensus in the group. This type of leadership is highly appreciated by people. The main problem occurs when there are many opinions and no clear decision. This form of leadership leads to participation of all members and respect for their contribution (Tracy, 2014). Transactional leaders This is type of leadership where the leader integrates the needs of the people and organisation goals. In this type of organisation, bureaucratic and professional sides conflicts. Leaders motivate employees through rewards on the work done. A leader lures the employees with job security in return for collaboration. According to transactional leaders, people are motivated through reward and punishment (Tracy, 2014). Transformational leaders This type of leadership leads to an environment where everyone is empowered to the highest standard. This results into a productive workforce. Transformation leaders are servant leaders and embrace the vision of organisation. This type of leadership is not selfish and leads with love (Tracy, 2014). Laissez-Faire This is type of leadership where leader involvement in decision making is minimised. This type of leadership is best in situations where employees are capable of coming up with decisions. In these organisations, there is no need for central coordination. This type of leadership avoids rewarding or punishing people. Leaders in these organisations ignore conflicts (Tracy, 2014). Effectiveness of Leadership styles at Toyota Using democratic leadership at Toyota will require a participative leadership where employees are involved in decision making. There will be contribution by all members and each opinion is valued. This is the most preferred leadership at Toyota. The recent recalls were blamed on lack of democratic leadership in the organisation (Tracy, 2014). The employees could not make decisions and had to wait for action from top management leading to slow response. Autocratic Leadership at Toyota is viewed by many as centralised with top management at Japan making main decisions. The managers at the country level cannot make a major decision and have to wait for the central management. This has led to leadership which relies more on control and power (Tracy, 2014). The recall crisis would have been avoided if Toyota ceased being more centralised in decision making. Despite this, leadership at Toyota is not fully autocratic. The company have well defined individual responsibilities and authority is not a major issue. The leadership is lean where they set vision, build up systems and persuade employees. Leadership at Toyota empathises on continuous improvement. Laissez-Faire This is type of leadership where there is low involvement of leader in decision making. This type of leadership is best where employees have capability of coming up with decisions and there is no need for central coordination (Tracy, 2014). At Toyota, this type of leadership may not work. The company requires central coordination due to the sensitivity of their work. There is need for the top leadership to be involved in coming up with decisions that may affect production at Toyota. The company cannot afford to ignore conflicts as dictated in this type of leadership. Classical and modern theories Taylor’s scientific theory The theory was developed by Taylor with and based on planning with an aim of achieving efficiency, specialisation and standardisation. The theory depends on mutual trust between the management and workers. This trust is achieved when the advantages of increased production go to workers, there is low stress in work, workers capabilities is enhanced through training and there is no boss concept. The theory was based on scientific rule of thumb, scientific selection of worker, scientific management of labour and scientific training of workers (Deems & Deems, 2003). Taylor’s scientific principle was applied at Ford motors and led to specialisation and increase in productivity. Weber’s bureaucratic approach The theory was based on formal organisation. According to the theory, organisation should be structured in a hierarchical manner. Each hierarchy have its responsibility and authority. Organisations applying this theory are predictable and stable and selection is impartial. Hence, the four principles that are used in the theory are; structure, specialisation, rationality and democracy (Deems & Deems, 2003). This theory is very vital in public institutions where hierarchy is required. Administrative theory This theory was developed by Fayol and looks at accomplishment of tasks. The theory includes management principles, the line and staff concept and the functions of management. The theory supports division of labour, discipline, unity of command and unity if direction. The interest of individual is above the general interest according to the theory. The theory helps an organisation to have employees with initiative and practices equity. There is high job security which improves performance. Through the theory, there is balance between centralisation and decentralisation. The theory outlines the functions of management (Deems & Deems, 2003). Motivational theories in organisations Leadership styles and motivation Autocratic leaders Autocratic leaders rarely seek advice from their workers when making decisions. This style is good in organisations which are fast paced and requires fast decisions. An autocratic leader motivates staff through establishing confidence in leadership ability to make sound and accurate decisions. The employees are comfortable with management skills in making effective decisions. This helps in periods of change as employees are able to accept management decisions (Deems & Deems, 2003). Democratic leadership This type of leadership involves employees in decision making. Through inclusion, a democratic leader is able to motivate workers. Employees takes interest in organisation success since they have helped in coming up with decisions. Inclusion makes employees motivated hence they can easily embrace change (Deems & Deems, 2003). Transformational leadership A transformational leader has a vision for the organisation and is considered charismatic. He motivates the employees by trying to get them to go along with his ideas and uses the organisation vision as an incentive for workers to increase their productivity. The leader comes up with a comprehensive plan for organisation success and explains the role for each employee in organisation success (Deems & Deems, 2003). Transactional leader The employees are motivated practicality by the transactional leaders rather than using inspiration. This may involve use of incentives. When employees reach a set target, they may be rewarded with a bonus (Deems & Deems, 2003). This helps the employees embrace change through working towards incentives and bonuses. Motivational theories and Toyota Maslow’s need hierarchy theory Maslow need hierarchy theory is based on the human needs. Human needs can be classified in a hierarchical order from the lower to the highest. When a need is satisfied, it no longer motivates the employee. The next need in hierarchy has to be activated in order to motivate. At lowest is safety needs, love, belonging and the top level is made up of self actualisation (Deems & Deems, 2003). All employees at Toyota are satisfied at the lower level of needs. The company pays their employees well and in a secure working environment. Toyota provides employees with childcare and has well developed recreational facilities. This ensures that employees are safe and secure hence they work to attain higher level of needs. To satisfy their need for belonging, Toyota does not discriminate workers. All workers have company uniform and uses first name. The company have no private parking or offices. Employees are encouraged to solve problems which boost their confidence with an aim of achieving self actualisation. The company keeps on offering promotional opportunities for their employees. There is also job rotation Hertzberg motivation-hygiene theory The theory is an extension of Maslow’s theory. According to the theory, people will always take credit when things go well and in case of failure they blame the external environment. The theory mostly looks at job satisfaction. The main area of emphasis is on controlling and planning employees work. Through use of Hertzberg theory, Toyota has been able to motivate their employees by HR policies, continuous job improvement, job rotation and feedback to support employees. The company gives awards every year to employees and ensures that there is continuous training (Deems & Deems, 2003). Salary is used as a motivator as well as hygiene factor. McGregor’s participation theory The theory has two views on human being based on workers participation. These are X and Y themes where X is negative and Y positive. No worker belongs to either x or y theory but they share traits of both (Deems & Deems, 2003). The main traits swings from x and y based on the environment. Through x based theory, employees are indolent, lack ambition, self centred and gullible. The y theory assumes that employees are passive, assume responsibility wants their organisation to succeed, can guide themselves and have need for achievement. Toyota ensures that their employees are in the Y theory through use of systems such as visual management and providing employees with health covers, adequate salary and managing diversity. The organisation ensures that there is sense of belonging in the organisation. Motivational theories and organisational objectives The managerial objective is to have work done through employees. This makes it vital for the managers to know motivational theories and how they can be implemented to achieve organisational goals. Organisations are meant to achieve corporate goals and employees helps in achieving them through working towards individual targets and goals. If every employee is able to provide their best perfoamcne, it is easy to achieve organisational goals. When employees are demotivated, an organisation lags behind. Managers are expected to use appropriate theories in motivating employees and also help them in managing effectively. When employees are motivated, they become more creative and productive. The discussed theories show how leaders can motivate employees to achieve the organisational goals. The individual perfoamcne taken collectively helps in attaining organisation goal. Motivational theories discussed acts as tools to motivate workers as evidenced at Toyota. The theories help the management to understand that individuals have different needs. Organisation perfoamcne is a function of a motivated workforce hence the need to motivate employees (Deems & Deems, 2003). Thus, the management have to understand motivational theories and implement them for the organisation to have optimal results. Mechanisms for developing effective teamwork in organisations Toyota is built on lean production system. In order to tackle problems more effectively, the company uses Toyota production system (TPS). TPS is built under the just in time principle where there is no delay between supplies and production. The organisation emphasises on efficiency and ensures there is minimal resource wastage (Rother, 2010). Through TPS, employees in the front lines are empowered and can work on a problem when they see it. Toyota Kata Toyota Kata is a process used to coach and improve employee perfoamcne at the company. The main assumption is that the leaders have a clear goal while the subordinate helps in enhancing perfoamcne to meet the goal. The process involves coaching the employees towards a terminal skill. The main aim is to build perfoamcne and improve employees’ mindset. The Kata is embedded in lean production (Rother, 2010). Team Kata TPS is based on effectiveness of team work. The organisation creates cohesive families in a learning organisation. Team are given identical goals at Toyota. Thus, Toyota culture is embedded in lean organisation and effective teams. The organisation starts their focus on individual behaviour and increases complexity up to the group behaviour. The company culture is embedded on the habits of small groups formed. The company encourages employees, engage them and rewards creativity and innovation (Rother, 2010). Thus, the organisation culture is founded through coaching as explained in Kata. Group behaviour at Toyota Group behaviour at Toyota has led to its success in the automotive industry. Through launch of Toyota way in 2001, the company made changes in human resources that have enabled them to stay competitive in the market. The company employees have a sense of belonging and works as a large family. Through groups created by Kata training, the organisation has close knit teams. Each of the company employees contribute towards organisation goals. There is sense of friendship among employees through a healthy working environment. Toyota has empowered their employees in such a way that they can stop production line when a problem arise. Each worker is assumed to know their job well (Rother, 2010). Through creation of flexible teams, Toyota has been able to be ahead of competitors in the industry. Effective team Teams strengthen individuals’ workers. For teams to be effective there are several factors to consider. The factors are; goals, communication, commitment and rewards. Having a common goal unites the team members. Team must have realistic goals for it to function properly. This helps the team to work towards a set objective giving them direction. Effective communication is needed to ensure that members are able to know and monitor their progress, communicating also helps in establishing relationships. Rewards acts as a motivator. Through rewards, team members are able to work towards a set goal and feel encouraged. There is need for all members to be committed towards team success (West, 2004). All members in a team should work as one in order to attain the set goals. Technology can play part in enhancing team perfoamcne. One way of improving team performance through technology is creation of virtual teams. This helps in enhancing collaboration and communication among team members working independently. Use of virtual teams has been on rise as it helps to bring people with best expertise together irrespective of distance. Through use of technology, team members can communicate through video conferencing and social platforms to share ideas. Communication is one of the most important elements in creating an effective team and use of technology enhances it (West, 2004). Internet is an important source of information for the team members. References Brooks, I. 2006, Organisational behaviour: Individuals, groups and organisation. Harlow: Financial Times Prentice Hall. Deems, R. S., & Deems, T. A. 2003, Leading in tough times: The manager's guide to responsibility, trust, and motivation. Amherst, Mass: Human Resource Development Press. Dietz, G. & Gillespie, N. 2011, Building and Restoring Organisational Trust, London: Institute of Business Ethics. Kummerow, E., & Kirby, N. 2013, Organisational Culture. Singapore: World Scientific Publishing Company. Rother, M. 2010, Toyota kata: Managing people for improvement, adaptiveness, and superior results. New York: McGraw Hill. Toyota Motor Manufacturing (UK) Ltd, 2015, Toyota Manufacturing UK - Organisational Structure, Viewed 7th March 2015 from, http://recruitment.toyotauk.com/home/org- structure.jsp Tracy, B. 2014, Leadership. New York: American Management Association. West, M. A. 2004, The secrets of successful team management. London: D. Baird. Read More